The story of Stemtech’s epic rise and fall

Stemtech is a network marketing company that rode the stem cell research wave while they could.

Stem cell research was all the rage a few years back, and Stemtech rode that wave like a pro. The Atlantic even deemed 2013 the “Year of the Stem Cell”. [1]

But the surf has calmed, and it’s starting to look like there might not be any waves left for this stem cell MLM to ride.

So have I been involved?

This video explains:

All good? Let’s continue…

Overview

Stemtech calls themselves “THE Stem Cell Nutrition Company”, and they did a lot to earn that title.

Back in 2005, Ray Carter launched Stemtech with a group of DLT Scientists who were creating a product from Aphanizomenon Flosaquae, a freshwater plant that helps your body produce more stem cells.

By 2008 they had already opened up shop in more than 12 countries, and in 2009, the Direct Selling Association named them as one of three “Rising Star” companies in network marketing.

Then, a study came out that changed everything for them. Medical journal Cardiovascular Revascularization Medicine published findings that stem cell nutrition could truly revolutionize the health and wellness industry.

After that happened, they hit the Inc. 5,000 list and went from one product to three, breaking sales records in over 20 countries around the globe. Their revenue hit $58.1 million in 2013. [2]

In 2014 they moved their headquarters to Florida to evade taxes, and that’s pretty much all anyone has heard of them since their epic rise to fame. [3]

I was hoping this wasn’t another case of the Kurt Cobains (live fast, die young), but it looks like it is. In February 2017, Stemtech filed for bankruptcy, shocking all of their distributors and leaving them totally stranded. [4]

What’s more, CEO Ray Carter failed to make any public announcements regarding the bankruptcy. Kind of a harsh blow – leave your employees out of work and don’t even tell them why.

You must purchase at least 50 PV (one bottle) of product each month to remain active.

Products

The company was founded on a nutritional product that accelerates the rate of stem cell production in your body. Supposedly this has all kinds of health benefits, from increasing immunity to improving cardiovascular health.

Their flagship product is Stemrelease3, a supplement created using a rare freshwater plant that helps your body release stem cells. The supplement is supposed to improve your overall health, but particularly targets tissue maintenance and repair.

Other products in this line include StemFlo, a supplement that focuses on cardiovascular health and blood circulation, ST-5, a supplement that targets full-body wellness, StemSport, a combination of StemFlo and Stemrelease designed for athletes, DermaStem, a skincare product, StemPet, a stem cell supplement designed for your pets, and StemEquine, a supplement for horses.

They also have a newer line of eco-friendly products that include D-FUZE, a $30 sticker that you place on your cell phone to product you from the potentially dangerous electromagnetic waves it emits.

While none of these products are approved by the FDA, there are some studies that suggest they may be beneficial.

Benefits:
A recent study in the Journal of Stem Cell Research & Therapy shows that the supplement does actually help your body release more stem cells. A number of other studies show that stem cell nutrition can support cardiovascular health, help your wounds heal quicker, and even slow aging. None of these studies have been conclusive. [5]

Side Effects:
There are no known side effects associated with Stemtech’s supplements, but there are advisories warning customers not to rely on stem cell supplements to cure injuries and disease.

Compensation Plan

Independent Business Partners (IBOs) at Stemtech are offered several ways to earn money through their compensation plan. The higher your initial investment, the more you can earn.

Retail profit is offered as the difference between your discounted wholesale price and the retail price at which you sell product. The profit here is nothing impressive.

If you can recruit a solid team, though, you can earn up to 7% commission up to 7 levels deep on your organization’s sales. The higher your rank and the more expensive your starter pack, the more you earn.

If you get up to the extremely high ranks, the ones that only .01% of IBOs ever see, you can earn team commissions infinity levels deep. This is where the real money is at.

Generational bonuses are also given out to IBOs, and they go up to 6 generations.

A Lifestyle Leadership Bonus of 3%-10% is paid out on any order with over 100 BV. Lifestyle Infinity Bonuses of 1%-3% are offered infinity generations deep, starting with your 7th generation, but you’ve got to score some major brownie points to get that one. As always, Stemtech also offers car bonuses and incentive trips.

Recap

Stemtech was as promising as a child star, and soon they’ll be as washed up and forgotten as one. This is just one of hundreds of MLMs that looked like a great opportunity and ended up being a sinkhole for both the time and money of their IBOs.

Most MLMs fail. The hope is that you’ll strike it lucky, get rich, and then get out before it’s too late. Of course, bankruptcies and shutdowns usually come just like this one: out of nowhere. You can’t really see them coming until they’ve knocked you on your ass and you’re out of a job and all the commission and titles you worked so hard to earn.

The only saving grace is that most people weren’t making much money anyway (check out the best ways to make money online).

If you like passive income streams, there are better opportunities out there.

In other words, you might like our training because it teaches the “good life” without approaching your family and friends to join your scheme.